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Tuesday 23 April 2019
Federal Charges and Arrest Announced of a Raleigh Man Who Allegedly Defrauded Elderly Durham Woman Through Mail and Wire FraudsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces the arrest after a federal grand jury sitting in Raleigh previously returned an indictment charging FURMAN ALEXANDER FORD, 49, of Raleigh with eleven counts each of Mail Fraud and Wire Fraud.
Between August 2014 and December 2014, FORD allegedly committed Mail Fraud and Wire Fraud based on the defendant’s scheme to submit fraudulent withdrawal letters on behalf of an elderly victim to New York Life Insurance (NYL) for payments totaling $246,000. FORD worked as a financial advisor for NYL.
In 2009, the victim inherited real property valued at $1.3 million from a relative in Durham, NC. After the estate was settled, FORD assisted the victim in setting-up a charitable trust with NYL using the inheritance proceeds. He worked as an insurance and financial agent at NYL from 2012 to 2015, and met the victim through a mutual friend. The charitable trust agreement provided an annuity payment in the amount of $6,000 per month to victim during her lifetime. As part of FORD’s responsibility as a financial agent, he drafted and submitted authorized letters of withdrawal from the victim’s trust account to pay certain expenses. Under NYL customer service guidelines, the financial agent is required to have the client sign the letter with “wet ink” before submitting to NYL via the mail. The funds would then be electronically wired to the recipient as directed by the client with their full knowledge and consent.
During the course of this investigation, agents identified eleven separate fraudulent letters of withdraw drafted by FORD and submitted to NYL headquarters in NY on behalf of his client. The letters were all mailed by FORD via UPS from his office in Raleigh. The funds requested ranged from $5,000 to $45,000 and totaled $246,000. The proceeds were then electronically wired into the victim’s personal checking account in clear violation of NYL policy. Agents believe the defendant “cut and paste” the victim’s signature from a legitimate letter before making a copy and sending it to NYL on some of the fraudulent letters and on the remaining letters, her signature had been forged. The forged signatures appear to be signed by the same person, presumably FORD.
If convicted on all of the charges, FORD would face a maximum penalty of 20 years imprisonment, a $250,000 fine, and a term of supervised release of not more than 3 years, and restitution.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case was conducted by the U.S. Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Ethan Ontjes is prosecuting the case for the government.
Extrudex Aluminum, Inc. pleaded guilty to misprision of a felonyRead the Press Release
Extrudex Aluminum, Inc., an aluminum manufacturing company in Mahoning County, with a parent company in Canada, pleaded guilty to misprision of a felony in connection with a conspiracy to obstruct justice related to an investigation by the Occupational Safety and Health Administration.
The company is scheduled to be sentenced August 1.
Extrudex, through its employees, concealed felony obstruction of justice offenses from Extrudex management in Canada and further failed to inform law enforcement of the commission of those offenses. This took place between April 1, 2016, and January 1, 2018, according to a criminal information
This case was investigated by the U.S. Department of Labor, Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys Carmen Henderson and Om Kakani.
Eagle Rock Man Arrested on Indictment Alleging Investment Scam that Claimed Precious Metals Could Be Extracted from ‘Ancient Slag’Read the Press Release
LOS ANGELES – An Eagle Rock resident was arrested this morning on federal fraud and money laundering charges stemming from a scheme that sold “ancient slag,” a mining waste byproduct that supposedly contained precious metals.
Michael Godfree, 77, is scheduled to be arraigned on a seven-count indictment this afternoon in United States District Court.
According to the indictment that was returned by a federal grand jury on April 19 and unsealed today, Godfree was co-founder of The Minerals Acquisition Company (TMAC), a Pasadena-based outfit that offered to sell slag to victims who were told the company possessed “proof of concept” of a method to extract precious metals from this slag, which was generated from copper mining. TMAC sold ton-quantities of the slag with promises of refining the material and recovering precious metals. TMAC provided victims with supposedly attorney-certified “Certificates of Title” that purported to transfer ownership of the slag to victims.
Godfree’s scheme was nothing more than a series of lies, according to the indictment, which alleges that Godfree and TMAC did not actually own the vast majority of the slag they sold, there was not a commercially viable process for extracting precious metals from the slag, and the business operation had not been endorsed by an attorney.
TMAC was dissolved in 2015, but its operations were largely taken over by Precious Metals of North America, Inc., another of Godfree’s companies.
As a result of the fraudulent conduct, prosecutors believe that Godfree generated at least $7 million in sales from more than 100 victims.
Rather than using the victims’ money for the purchase of slag and to develop an extraction process, prosecutors said Godfree and his co-schemers used victims’ money to pay for, among other things, sales commissions and Godfree’s personal expenses, which included the purchase of luxury items.
The indictment charges Godfree with five counts of mail fraud, one count of money laundering and one count of aggravated identity theft for misusing the name of an attorney.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If he were to be convicted of the seven counts in the indictment, Godfree would face a statutory maximum sentence of 112 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation, West Covina Resident Agency.
This matter is being prosecuted by Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section and Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section.
Duxbury Man Sentenced Under Federal Crack House Statute to Time Served and Three Years of SupervisionRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that U.S. District Court Judge William K. Sessions III sentenced Mark Russell (a.k.a. “Snake”), 61, of Duxbury, Vermont, to time-served for violating the federal “Crack House Statute.” This statute prohibits making a place, such as a residence, available for manufacturing, storing, distributing, or using any controlled substance (the statute is not limited to crack cocaine). Judge Sessions also sentenced Russell to a three-year period of intensive supervision by the United States Probation Office, which begins immediately.
Russell previously pled guilty to this offense and admitted to allowing his residence, located on Route 100 in Duxbury, to be used by others for selling, storing, and using controlled substances. Specifically, Russell admitted to allowing an out-of-state dealer to stay at his residence and sell crack cocaine there. In exchange, Russell received user-quantities of crack cocaine from the dealer.
Russell was arrested on April 26, 2018. He was released on June 18, 2018 and allowed to participate in a residential drug rehabilitation program. In sentencing Russell to time-served and accepting the parties’ recommendation, Judge Sessions noted that Russell has “responded very well to treatment.”
This statute imposes a maximum sentence of twenty years imprisonment, up to a $500,000 fine, and up to three years of supervised release to begin after any term of imprisonment is served.
U.S. Attorney Christina Nolan stated that this case is part of a renewed commitment by the U.S. Attorney’s Office to deter Vermont residents from assisting larger-scale out-of-state drug dealers by providing them with a local shelter or base camp for their drug trafficking operations in Vermont. Often, the individuals who house the out-of-state dealers are themselves addicts who, as here, receive payment in the form of drugs.
This case was investigated by the Vermont State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant U.S. Attorney Joe Perella. Russell is represented by Michael Desautels, Esq., of the Federal Public Defenders Office.
Doddridge County woman and Harrison County woman admit to methamphetamine distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Kelly Wright-Meyers, of West Union, West Virginia, and Ashley Wagner, of Clarksburg, West Virginia, have admitted to their involvement in methamphetamine distribution operation, United States Attorney Bill Powell announced.
Wright-Meyers, age 36, pled guilty to one count of “Distribution of Methamphetamine.” Wright-Meyers admitted to selling methamphetamine in December 2017 in Harrison County.Wagner, age 28, pled guilty to one count of “Conspiracy to Distribute Methamphetamine.” Wagner admitted to working with others to distribute methamphetamine from October 2017 to September 2018 in Harrison County and elsewhere.
Wright-Meyers and Wagner each face up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated. The United States Marshal Service assisted in the arrests.
The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. Magistrate Judge Michael John Aloi presided.
Detroit Man Sentenced to Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Detroit, Michigan, man who trafficked heroin from Detroit into Charleston was sentenced to 41 months in prison, announced United States Attorney Mike Stuart. Stuart commended the investigation conducted by the Charleston Police Department.
Sean Bernard Williams, 46, previously pled guilty to possession with intent to distribute heroin. On November 6, 2014, Williams traveled by bus from Detroit to the Transit Mall in downtown Charleston. Williams then got into a vehicle and hid nearly 150 grams of heroin under his seat. Police investigators stopped Williams’ vehicle after it drove through a stop sign. The investigators received consent to search the vehicle and quickly discovered Williams’ heroin.
“Williams brought 150 grams of heroin with him from Detroit to peddle on our streets,” said United States Attorney Mike Stuart. “Detroit drug dealers have been a problem and we’ve locked up a big number of Detroit drug dealers. This is another and there will be many more if they bring their poisons to the towns in my district.”
The case was prosecuted by Assistant United States Attorney Drew O. Inman. Senior United States District Judge John T. Copenhaver, Jr presided over the plea hearing.
SDWVNews and USAttyStuart
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Detroit Man Sentenced to 40 years for Child Exploitation CrimesRead the Press Release
A Detroit man was sentenced yesterday to 40 years’ imprisonment for convictions of producing child pornography and receiving child pornography online, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Steve Francis, Homeland Security Investigations.
Sentenced was Michael Jonathan Pankey, age 38.
In November 2018, Pankey pleaded guilty to sexual exploitation crimes. According to court records, Pankey admitted that he molested and took sexually explicit photographs of a five year old child. He also admitted to downloading child pornography from the internet. Pankey previously worked at an early childhood center.
“Sexual exploitation is one of the most depraved crimes committed, and this case is especially disturbing given the defendant’s former role as a daycare service provider,” said Special Agent in Charge Steve Francis of HSI Detroit. “This sentence serves as a reminder that HSI is committed to collaborating with its community partners to bring to justice those who exploit children.”
This case was investigated by Special Agents of Homeland Security Investigations. The case is part of the Project Safe Childhood initiative, and was prosecuted by Assistant United States Attorney Maggie Smith.
Des Moines Man Sentenced to 15 Years in Prison for Credit Union RobberyRead the Press Release
DES MOINES, Iowa – On April 23, 2019, Christopher Leon Weckman, age 53, of Des Moines, was sentenced by United States District Court Senior Judge Robert W. Pratt to 180 months (15 years) in prison for the robbery of the Tradesmen Community Credit Union announced United States Attorney Marc Krickbaum. Weckman was convicted by a jury on August 3, 2018.
Evidence presented at trial established that Weckman entered the Tradesmen Community Credit Union, located on Southeast 14th Street in Des Moines, in the late afternoon of September 25, 2017. Weckman, who concealed his face, placed an object on the counter – which he told bank employees and customers was a bomb. Weckman then demanded money from the bank tellers. After fleeing the bank, Weckman was apprehended a short time later by the Des Moines Police Department.
This matter was investigated by the Des Moines Police Department and the Federal Bureau of Investigation Safe Streets Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Defendants Enter Guilty Pleas in Red Lake Heroin Conspiracy That Resulted in the Shooting Deaths of Two IndividualsRead the Press Release
United States Attorney Erica H. MacDonald today announced the guilty plea of BRYAN BOARDMAN, a/k/a “Boon,” 25, for his role in a heroin distribution conspiracy that resulted in the shooting deaths of two individuals. FRANKLIN JACKSON, a/k/a “Frankie,” 23, also pleaded guilty on April 18, 2019, to one count of conspiracy to distribute heroin. Both defendants entered their guilty pleas before Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minnesota.
According to the defendants’ guilty pleas and documents filed in court, between October 1, 2018, and October 21, 2018, BOARDMAN, JACKSON, and a third co-defendant KRISTOPHER SULLIVAN, 24, conspired with each other to distribute heroin on the Red Lake Indian Reservation. In the early morning hours of October 21, 2018, BOARDMAN, JACKSON, and SULLIVAN met in a trailer on the Red Lake Indian Reservation belonging to JACKSON’s girlfriend. The three defendants made preparations to sell heroin later that day, including contacting potential customers to let them know that heroin was available for sale at the trailer. The defendants’ drug trafficking activities were interrupted at approximately 6:30 a.m. that morning when three armed, masked men broke into the trailer in an apparent armed robbery. BOARDMAN drew a 9 millimeter pistol and fired eight shots, killing two of the intruders. The third intruder was wounded in the leg by the gunfire and fled from the scene.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Jeffrey S. Paulsen and Julie E. Allyn are prosecuting the case.
Defendant Information:
BRYAN BOARDMAN, a/k/a “Boon,” 25
Minneapolis, Minn.
Convicted:
- Conspiracy to distribute heroin, 1 count
- Using and carrying a firearm during a drug trafficking crime, 1 count
FRANKLIN JACKSON, a/k/a “Frankie,” 23
Unknown
Convicted:
- Conspiracy to distribute heroin, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
DEA prepares for prescription drug take back across MontanaRead the Press Release
U.S. Attorney Kurt Alme will join the Drug Enforcement Administration on April 27th for its 17th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at 35 collection sites across Montana. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“This is the single most important step we can take in Montana to prevent more opioid abuse,” said U. S. Attorney Alme. “Prevention is the best cure for addiction,” he said.
“We know that many first-time abusers of pain killers get them from a friend or relative, including from home medicine cabinets,” said DEA Montana Resident Agent in Charge Stacy Zinn-Brittain. “We have learned that pill experimentation has begun with our students in our high schools located in both Billings and Laurel,” Zinn-Brittain said.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose.
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Montanans turned in 3,470 pounds of pills at the October event.
The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.) Flushing medications down the toilet or throwing them in the trash pose safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
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DEA and partners hold National Prescription Drug Take Back Day on Saturday April 27Read the Press Release
With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens. In continuation of this effort, DEA and its national, tribal and community partners will hold the 17th National Prescription Drug Take Back Day across the country on Saturday, April 27. The service is free and anonymous.
Now in its ninth year, DEA has collected a total of nearly 11 million pounds (more than 5,400 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites manned by nearly 5,000 partner law enforcement agencies will be open 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles or sharps.)
"Addiction causes a tremendous amount of pain and suffering, not just for those addicted to drugs, but also for their families and friends," said Acting Administrator Uttam Dhillon. "Helping people keep their loved ones safe by disposing of unwanted, unused, and expired prescription medications is just one of many ways that DEA is working to break the cycle of addiction and overdose deaths plaguing this country."
“We know of many cases where leftover pain pills have led to an opioid addiction,” U.S. Attorney Justin Herdman said. “Properly disposing of these pills is one important step anyone can take to get involved in turning the tide on the opioid epidemic that has caused so much pain here in Ohio.”
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. The majority of prescription drug abusers say they get their drugs free from friends and family, including from the home medicine cabinet. Take Back Day is a unique opportunity for Americans to protect their homes and medicine cabinets from theft and abuse.
National Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public turned in 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA and nearly 4,800 of its local and tribal partners.
DEA and Partners Hold National Prescription Drug Take Back Day SaturdayRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank joined the U.S. Drug Enforcement Administration (DEA) in announcing that DEA will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, April 27, between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at over 600 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: www.DEATakeBack.com.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards.
“DEA has touched a nerve in America with its recent Take Back events, as evidenced by the millions of pounds of pills collected during our previous 16 events,” said DEA Special Agent in Charge Brian D. Boyle. “These events are only made possible through the dedicated work and commitment of our local, state and federal partners, and DEA thanks each and every one of them for their continuous efforts on behalf of the American people.”
“The DEA drug take back is an integral part of controlling the diversion of prescription drugs into the wrong hands and into our ecosystem,” said Halsey B. Frank, U.S. Attorney for the District of Maine. “Maine has been a national leader ever since the program was founded and I hope and expect that we will continue the leadership in 2019.”
Last October, during its 16th Take Back Day, the DEA New England Division participated in the drug take back day and, over the course of four hours, 80,277.68 pounds or 40 tons of expired, unused and unwanted prescription drugs we’re collected at 613 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT 4,792.30 lbs.
MA 26,255.58 lbs.
ME 27,156.70 lbs.
NH 11,880 lbs.
RI 4,364 lbs.
VT 5,829 lbs.
TOTAL 80,277.68 lbs.
DEA and Partners Hold National Prescription Drug Take Back DayRead the Press Release
BOSTON – This weekend, the U.S. Drug Enforcement Administration will once again conduct one of its most popular community programs: National Prescription Drug Take Back Day. On Saturday, April 27, between 10 a.m. and 2 p.m., the public can dispose of their expired, unused and unwanted prescription medications at over 600 collection sites throughout New England, operated by local law enforcement agencies and other community partners. The service is free of charge, no questions asked and most of these collection sites can be found in the lobby of your local Police Department. To find a collection site near you go to: www.DEATakeBack.com.
This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.
“DEA has touched a nerve in America with its recent Take Back events, as evidenced by the millions of pounds of pills collected during our previous 16 events,” said DEA Special Agent in Charge Brian D. Boyle. “These events are only made possible through the dedicated work and commitment of our local, state and federal partners, and DEA thanks each and every one of them for their continuous efforts on behalf of the American people.”
“I encourage all Massachusetts residents to participate in the DEA’s National Prescription Drug Take Back Day,” said U.S. Attorney Andrew E. Lelling. “Day after day, we see the devastating effects of prescriptions - particularly opioids - that end up in the hands of those who were not prescribed the medications. It’s important to remember that sharing, selling, or stealing prescription pills is illegal, and worse, it can lead to addiction. With over 600 sites across New England, we hope everyone will take advantage of this public safety program and responsibly dispose of their unused prescriptions.”
Last October, during its 16th Take Back Day, the DEA New England Division collected 80,277.68 pounds - or 40 tons - of expired, unused and unwanted prescription drugs at 613 collection sites throughout New England.
The following was the breakdown of collected weights for the six New England states:
CT 4,792.30 lbs.
MA 26,255.58 lbs.
ME 27,156.70 lbs.
NH 11,880 lbs.
RI 4,364 lbs.
VT 5,829 lbs.
TOTAL 80,277.68 lbs.
DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that flushing these drugs down the toilet or throwing them in the trash posed potential safety and health hazards. Since its inception, the initiative has received enthusiastic public support and made great strides in preventing drug misuse and abuse.
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. will join the DEA on April 27th for its 17th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including here in the (Eastern District of North Carolina. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“Across the county and here in the Eastern District of North Carolina, we are facing a real and dangerous threat from opioids and other prescription drugs,” said United States Attorney Higdon. “We have unprecedented levels of addiction, frightening numbers of overdoses and an alarming number of deaths because of the over prescription and improper use of these drugs. And this requires each of us to work to solve it. By properly disposing of prescription medication we do not need, we can reduce the risk that these drugs will fall into the wrong hands. Please help us resolve this problem by participating in the national Prescription Drug Take Back Day.”
Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division said, “Addressing the problem of the abuse of controlled pharmaceuticals continues to be one of DEA’s top priorities. One way to address this issue is to encourage the public to properly remove their unwanted, unused and dated prescription medications from their homes. DEA and its law enforcement and community partners are holding its seventeenth take-back event in order to child proof and teen proof homes so that these medications cannot be abused. I invite you to do your part in the midst of this opioid crisis as we strive to make our communities safer.”
Last October Americans turned in 457 tons (900,000 pounds) of prescription drugs at almost 6,000 sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 16 previous Take Back events, DEA and its partners have taken in over 11 million pounds—more than 5,400 tons—of pills. The disposal service is free and anonymous, no questions asked. (The DEA cannot accept liquids, needles, or sharps, only pills or patches.)
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov/#collection-locator where you can search by zip code, city, or state.
Company Agrees to $46 Million Penalty for Falsifying Test ResultsRead the Press Release
ALEXANDRIA, Va. – An Oregon aluminum extrusion manufacturer has agreed to pay $46 million to NASA, the Department of Defense, and others to resolve criminal charges and civil claims relating to a 19-year fraud scheme that included falsifying thousands of certifications for aluminum extrusions provided to hundreds of customers.
“For nearly two decades, SPI and its employees covered up substandard manufacturing processes by brazenly falsifying test results,” said G. Zachary Terwilliger, U.S Attorney for the Eastern District of Virginia. “They then provided the false test results to hundreds of customers across the country, all to increase corporate profits and obtain production-based bonuses. This proposed resolution ensures that the victims of this conduct, including the U.S. military, can replace faulty product put into the supply chain and help recover the costs foisted on taxpayers to investigate this scheme. I want to thank our partners at NASA-OIG, DCIS, and the FBI for their efforts in helping bring much-needed oversight and reform to these companies.”
According to court documents, Hydro Extrusion Portland, Inc., formerly known as Sapa Profiles Inc. (SPI), and its corporate parent, Hydro Extrusion USA, LLC, formerly known as Sapa Extrusions, Inc. (SEI), admitted to providing customers, including U.S. government contractors, with falsified certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum extruded at the companies’ Oregon-based facilities. Tensile testing involves slowly stretching and then ripping apart a sample of the metal using a machine, which then measures the force applied to the sample at each stage of the test.
“For nearly 20 years, Sapa Profiles and Sapa Extrusions falsified critical tests on the aluminum they sold—tests that their customers, including the U.S. government, depended on to ensure the reliability of the aluminum they purchased,” said Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division. “Corporate and personal greed perpetuated this fraud against the government and other private customers, and this resolution holds these companies to account for the harm caused by their scheme.”
According to court documents, SPI has agreed to plead guilty to one count of mail fraud, and SEI has entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed here today charging the company with mail fraud. As part of the plea agreement, SPI has agreed to pay $34.1 million in combined restitution to NASA, the Department of Defense’s Missile Defense Agency (MDA), and commercial customers. SPI has also agreed to forfeit $1.8 million in ill-gotten gains. The plea agreement remains subject to acceptance by the court at a plea hearing currently scheduled for May 13 before U.S. District Judge Liam O’Grady. The DPA with SEI is conditioned on the court’s acceptance and SPI’s satisfaction of the plea agreement’s terms.
“Today’s settlement reflects the Civil Division’s commitment to pursue fraudulent conduct,” said Jody Hunt, Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will vigorously pursue those who seek to take advantage of American taxpayers and undermine the safety and integrity of critical government programs.”
SPI also agreed to pay $34.6 million as part of a related civil settlement to resolve its liability under the False Claims Act for causing a government contractor to invoice MDA and NASA for aluminum extrusions that did not comply with contract specifications. Government contractors purchased aluminum extrusions for use on rockets for NASA and missiles provided to the MDA. Under the terms of the civil settlement agreement, SPI will satisfy the $34.6 million settlement through credits totaling $23.6 million for its restitution payments as part of the criminal plea agreement, plus additional payments of $6 million to NASA and $5 million to the MDA.
“The results of this investigation are indicative of the law enforcement community’s unwavering commitment to protecting the aerospace supply chain,” said Paul K. Martin, Inspector General of the National Aeronautics and Space Administration (NASA). “I am very proud of the central role the NASA OIG played in unraveling the test falsification scheme.”
According to the companies’ admissions, employees at SPI facilities in the Portland area generally altered the tests in one of two ways. First, from in or about 1996 through in or about 2006, an SPI plant manager led a scheme to make thousands of handwritten alterations to failing test results by changing failing numbers that fell below the minimum required test results to appear to be passing. Those numbers were then typed onto a certification and provided to customers. Second, from in or about 2002 through September 2015, Dennis Balius, the SPI testing lab supervisor, led a scheme to alter tests within SPI’s computerized systems and provide false certifications with the altered results to customers. Balius also instructed employees to violate other testing standards, such as increasing the speed of the testing machines or cutting samples in a manner that did not meet the required specifications. Balius pleaded guilty in July 2017 and was sentenced to three years in prison and ordered to pay over $170,000 in restitution.
“Our partners at NASA and in the military – as well as hundreds of private businesses – put their faith in the integrity of this supplier and the structural integrity of its products,” said Loren ‘Renn’ Cannon, Special Agent in Charge of the FBI’s Portland Field Office. “For almost two decades, this company’s greed violated that trust and put lives at risk. Today’s settlement is an important step to repairing the harm done.”
According to court documents, the SPI employees generally engaged in these practices to conceal the inconsistent quality of aluminum extrusions produced by SPI, avoid the costly scrapping of metal and accompanying production delays, improve SPI’s and SEI’s profits, and receive bonuses that were calculated in part based on a production metric.
“Today’s proposed resolution with SPI exhibits the unending commitment of DCIS and its investigative partners to bring to justice those who seek to defraud the Department of Defense,” said Bryan Denny, Special Agent in Charge for Defense Criminal Investigative Service’s (DCIS) Western Field Office. “Those who purposely disregard requirements imposed to assure the quality of materials provided to our military will be investigated and prosecuted to the fullest extent of the law.”
In addition, the companies admitted that SPI’s customers included U.S. government contractors who in turn provided aluminum extrusions produced by SPI to NASA and the MDA for use in “frangible joints” in rockets provided to NASA and missiles provided to the MDA, respectively. According to court documents, the replacement cost of frangible joints provided to the MDA that included SPI extrusions is approximately $15.3 million, and NASA incurred approximately $9 million in investigative and other costs to determine the impact of SPI extrusions on NASA operations.
As described in the civil settlement agreement, NASA maintains that SPI’s manufacturing processes lacked sufficient controls and produced extrusions unable to pass mechanical properties testing. NASA further maintains that it identified SPI’s out-of-specification extrusions as the cause of two failed rocket launches, which resulted in the loss of important scientific missions. SPI disputes NASA’s positions, and except for those facts admitted to in the DPA and the plea agreement, the claims resolved by the civil settlement are allegations only. There has been no determination of liability. To protect the government supply chain, NASA both suspended SPI from government contracting and proposed SPI for debarment government-wide. The exclusion from government contracting has been effective since September 30, 2015.
A number of significant factors contributed to the Department’s criminal resolution with the companies. Among these, the companies received significant credit for their cooperation with the Department’s investigation and their engagement in extensive remedial measures to address the misconduct, including the termination and severance of employees who were involved, the implementation of state-of-the-art equipment to automate the tensile testing process, company-wide audits at all U.S. tensile labs, increased resources devoted to compliance and revamping internal quality controls and quality audit processes. However, the companies did not receive more significant mitigation credit, either in the penalty or the form of resolution, because the companies did not voluntarily self-disclose the full extent of their misconduct to the Department.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division; Joseph H. Hunt, Assistant Attorney General of the Justice Department’s Civil Division; Paul K. Martin, Inspector General of the National Aeronautics and Space Administration (NASA); Loren ‘Renn’ Cannon, Special Agent in Charge of the FBI’s Portland Field Office, and Bryan Denny, Special Agent in Charge for Defense Criminal Investigative Service’s (DCIS) Western Field Office, made the announcement. Assistant U.S. Attorney Ryan S. Faulconer and Trial Attorneys Emily Scruggs and Laura Connelly of the Criminal Division’s Fraud Section are prosecuting the criminal case. Trial Attorneys Allison Cendali and Greg Pearson of the Civil Division’s Fraud Section handled the civil case.
NASA Launch Services Program provided extensive cooperation and assistance throughout the investigation.
Except for those facts admitted to in the DPA and the plea agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-123 and 124.
Chinese Captain Sentenced to Life in Federal Prison in Maritime Drug Smuggling CaseRead the Press Release
SHERMAN, Texas – Two Chinese nationals have been sentenced for maritime drug smuggling, announced Eastern District of Texas U.S. Attorney Joseph D. Brown today.
FeiShang Liang, 52, and KanHua Wu, 51, both of the People’s Republic of China, were found guilty by a jury of maritime drug smuggling violations following a four-day trial before U.S. District Judge Amos L. Mazzant, III on Aug. 2, 2018. Wu was sentenced to 235 months in federal prison on Nov. 13, 2018. Liang was sentenced to Life in federal prison today by Judge Mazzant.
According to information presented in court, on Nov. 24, 2016, while on routine patrol in the Eastern Pacific Ocean, a United States Coast Guard Cutter detected a 120 foot long fishing vessel approximately 1,025 nautical miles west of the Galapagos Islands, Ecuador. The Coast Guard launched its small boat to approach the fishing vessel, at which time the crew aboard the fishing vessel began throwing packages overboard. Afterwards, law enforcement officers recovered 42 packages containing 983 kilograms of cocaine and the seven crew members aboard the fishing vessel were arrested and charged with maritime drug smuggling violations. Testimony at trial revealed that Liang was the ship’s captain and Wu was the engineer. A U.S. Coast Guard helicopter monitoring the vessel caught both Liang and Wu on videotape as they threw over one ton of cocaine outfitted with GPS trackers into the ocean as they were being pursued by the Coast Guard.
“We are committed to dismantling drug trafficking organizations and their entire global enterprise,” said Eastern District of Texas U.S. Attorney Joseph D. Brown. “The work done by the Drug Enforcement Administration and United States Coast Guard in investigating this case has been outstanding in every respect. We will continue to follow the chain of distribution from the street all the way to the source of supply and prosecute everyone responsible.”
This case was investigated by the U.S. Drug Enforcement Administration and the U.S. Coast Guard and prosecuted by Assistant U.S. Attorneys Jay R. Combs and Christopher Eason.
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Carjacking Conviction Results in Forty Years in PrisonRead the Press Release
OKLAHOMA CITY – RUFUS LOU NELSON, JR., 35, has been sentenced to forty years in prison for carjacking and other crimes, announced First Assistant U.S. Attorney Robert J. Troester.
In September 2018, a federal jury heard evidence that on July 5, 2016, Nelson forced a woman at gunpoint to drive from Edmond to the south side of Oklahoma City. While she was driving on Interstate 240 between May Avenue and Pennsylvania Avenue, Nelson shot her in the head. She survived but is now permanently blind. After she got out of the car and onto the median, two Good Samaritans stopped to provide medical assistance and called 911. Oklahoma Highway Patrol officers found Nelson approximately one hour later skulking under the overpass at I-240 and Pennsylvania Avenue.
The jury convicted Nelson of being a felon in possession of ammunition, carjacking, kidnapping, and using and discharging a firearm during a crime of violence.
Today, U.S. District Judge Robin J. Cauthron sentenced Nelson to 480 months—the equivalent of forty years—in the custody of the Bureau of Prisons.
Nelson has been in the custody of the U.S. Marshals Service since his arrest in July 2016.
This case is the result of an investigation by the Oklahoma City Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Oklahoma Highway Patrol, with assistance from the Oklahoma County District Attorney’s Office and the Oklahoma State Bureau of Investigation. Prosecuted by Assistant U.S. Attorneys Mark R. Stoneman and Brandon Hale, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001.
Reference is made to court filings for further information.
Caribou Man Sentenced to 3 years for Failing to Register in Maine as a Sex OffenderRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Stephen G. Olivo, 59, of Hillsborough County, New Hampshire, and Caribou, Maine was sentenced today in U.S. District Court by Judge Lance E. Walker to 3 years in prison and 5 years of supervised release for failing to register as a sex offender. Olivo pleaded guilty on November 6, 2018.
Court records reveal that on about October 2, 1990, the defendant was convicted of aggravated felonious sexual assault in Hillsborough County that required him to register as a sex offender for life. In late 2014 or early 2015, the defendant traveled from Georgia to Maine and lived and worked in Aroostook County but failed to inform the sex offender registry in New Hampshire that he had left New Hampshire. He also never registered in Maine, as required. He was arrested in September 2018.
The investigation was conducted by the United States Marshal’s Service.
Beckley Man Sentenced to Federal Prison for Drug Distribution ChargesRead the Press Release
BECKLEY, W.Va. – A Beckley man who admitted to selling oxycodone and heroin was sentenced today, announced United States Attorney Mike Stuart. Steven Rumbold, 49, of Glen Morgan, Raleigh County, was sentenced to 18 months in federal prison for distributing oxycodone and heroin. Stuart commended the investigative efforts of the Beckley/Raleigh County Drug and Violent Crime Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
“Those who continue to perpetuate the opioid epidemic will be prosecuted,” said United States Attorney Mike Stuart. “West Virginians have already paid too high a price at the hands of drug dealers like Rumbold.”
Rumbold previously admitted that on July 25, 2015, he sold oxycodone to a confidential informant working with the Beckley/Raleigh County Drug and Violent Crime Unit. Rumbold also previously admitted to selling additional quantities of oxycodone and heroin from his home in Glen Morgan to the same informant on at least two different dates. On August 18, 2015, police officers executed a search warrant at defendant’s home and found additional quantities of controlled substances and firearms.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
SDWVNews and USAttyStuart
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Beaumont Man Sentenced to Seven Years in Federal Prison for Methamphetamine TraffickingRead the Press Release
Gulfport, Miss. – Joseph Daniel Land, 48, of Beaumont, Mississippi, was sentenced today by U.S. District Judge Louis Guirola, Jr. to 84 months in federal prison followed by four years of supervised release, for possessing with intent to distribute methamphetamine, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze with the Federal Bureau of Investigation.
On October 19, 2016, Land sold two (2) ounces of methamphetamine to a confidential source in McLain, Mississippi. In addition, several co-conspirators reported that Land was involved in the distribution of methamphetamine. On July 10, 2018, Land was charged in a federal indictment with possession with intent to distribute methamphetamine. He pled guilty on January 22, 2019.
In total, Land was held responsible for selling over 500 grams of methamphetamine ICE from September 2016 through April 2017, based on his sale to a source and information learned during the investigation.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John Meynardie.
Augusta Man Pleads Guilty to Firearms ChargeRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Ryan D. Merrill, 39, of Augusta, Maine, pleaded guilty today in U.S. District Court to possessing an unregistered silencer. Merrill was indicted in October 2018.
According to court records, on July 17, 2018, officers with the Augusta, Maine police department (APD) responded to a complaint of gunshots in a residential area. Merrill had been firing a .22 caliber rifle at a fox and at small propane tanks behind his home. Officers discovered that Merrill had modified an automotive oil filter and attached it to the muzzle of the rifle using a special adapter in order to suppress the sound of rounds he fired. Merrill had not registered the silencer in the National Firearms Registration and Transfer Record and he knew that the possession of the silencer was prohibited by federal law.
The case was investigated by Augusta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proved to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Atlanta sex trafficker sentenced to 21 yearsRead the Press Release
ATLANTA - Quintavious Obie has been sentenced to federal prison for engaging in sex trafficking and witness tampering. The defendant was originally indicted for sex trafficking in 2018 but continued to harass and intimidate victims and was charged with witness tampering as well.
“Obie lured his victims into prostitution and after he was arrested continued to harass and intimidate them,” said U.S. Attorney Byung J. “BJay” Pak. “Sex trafficking exploits and traumatizes some of the most vulnerable members of our society. We are sending a clear message to those seeking to engage in this type of criminal activity: you will be caught and prosecuted.”
“This defendant showed a complete disregard for the women he entrapped into sex trafficking,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners made this case a priority and were successful in getting Obie off our community’s streets, despite his efforts to circumvent the charges against him by intimidating his victims.”
“Human trafficking is a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of Homeland Security Investigations Atlanta Nick S. Annan. “HSI is committed to working with our law enforcement partners to find and prosecute criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
According to U.S. Attorney Pak, the charges and other information presented in court: Quintavious Obie lured young women from rural areas in South Carolina to Atlanta with promises of a lucrative lifestyle. However, once they arrived in Atlanta, they were forced into a life of prostitution through mental and physical abuse. The victims were forced to engage in prostitution and to turn over to Obie all of the money they received. His victims were not allowed to go anywhere without his knowledge nor see anyone unless they were a paying client. Any deviation from his rules brought severe punishment.
Obie was indicted for sex trafficking in January 2018. However, this did not stop Obie from continuing his pattern of harassment and victimization. Specifically, from January 2018 to April 2018, Obie had others call and text his victims to have them retract their statements to law enforcement in an effort have his case dismissed. As a result, he was also charged with witness tampering.
Quintavious Obie, a/k/a Swayzii, a/k/a Shank, 32, of Atlanta, Georgia, was sentenced by U.S. District Judge Orinda D. Evans to 21 years, six months in prison to be followed by 10 years of supervised release, a special assessment of $300, and ordered to pay restitution in the amount of $7,500 per victim. Obie was convicted on these charges after pleading guilty on January 7, 2019.
This case was investigated by the FBI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Assistant U.S. Attorneys Jennifer Keen and Stephanie Gabay-Smith prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Angola Man Sentenced to 93 Months in PrisonRead the Press Release
FORT WAYNE – Johnathan Ladig, 33 years old, of Angola, Indiana, was sentenced by U.S. District Court Chief Judge Theresa L. Springmann after pleading guilty to selling firearms to a felon and transporting stolen firearms in interstate commerce, announced U.S. Attorney Kirsch.
Ladig was sentenced to 93 months in prison followed by 1 year of supervised release.
According to documents in the case, in December 2017, Ladig sold 15 stolen firearms to a confidential informant, and based upon recorded conversations, Ladig believed this individual to be a convicted felon who planned to sell the stolen firearms in Chicago. Ladig obtained the firearms by breaking into a home in Michigan, and he brought the firearms to Indiana for the sale.
This investigation was conducted by the ATF with the assistance of the Hillside County, Michigan, Sheriff’s Department and the Indiana State Police. The case was prosecuted by Assistant U. S. Attorney Anthony W. Geller.
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Aluminum Extrusion Manufacturer Agrees to Pay over $46 Million for Defrauding Customers, Including the United States, in Connection with Test Result Falsification SchemeRead the Press Release
An Oregon aluminum extrusion manufacturer has agreed to pay $46 million to NASA, the Department of Defense, and others to resolve criminal charges and civil claims relating to a 19-year fraud scheme that included falsifying thousands of certifications for aluminum extrusions provided to hundreds of customers.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Inspector General Paul K. Martin of the NASA Office of Inspector General, Special Agent in Charge Loren ‘Renn’ Cannon of the FBI’s Portland Field Office and Special Agent in Charge Bryan Denny of the Defense Criminal Investigative Service’s (DCIS) Western Field Office made the announcement.
According to court documents, Hydro Extrusion Portland, Inc., formerly known as Sapa Profiles Inc. (SPI), and its corporate parent, Hydro Extrusion USA, LLC, formerly known as Sapa Extrusions Inc. (SEI), admitted to providing customers, including U.S. government contractors, with falsified certifications after altering the results of tensile tests designed to ensure the consistency and reliability of aluminum extruded at the companies’ Oregon-based facilities. Tensile testing involves slowly stretching and then ripping apart a sample of the metal using a machine, which then measures the force applied to the sample at each stage of the test.
“For nearly 20 years, Sapa Profiles and Sapa Extrusions falsified critical tests on the aluminum they sold — tests that their customers, including the U.S. government, depended on to ensure the reliability of the aluminum they purchased,” said Assistant Attorney General Benczkowski of the Department of Justice’s Criminal Division. “Corporate and personal greed perpetuated this fraud against the government and other private customers, and this resolution holds these companies accountable for the harm caused by their scheme.”
“Today’s settlement reflects the Civil Division’s commitment to pursue fraudulent conduct,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department will vigorously pursue those who seek to take advantage of American taxpayers and undermine the safety and integrity of critical government programs.”
“For nearly two decades, SPI and its employees covered up substandard manufacturing processes by brazenly falsifying test results,” said U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia. “They then provided the false test results to hundreds of customers across the country, all to increase corporate profits and obtain production-based bonuses. This proposed resolution ensures that the victims of this conduct, including the U.S. military, can replace faulty product put into the supply chain and help recover the costs foisted on taxpayers to investigate this scheme. I want to thank our partners at NASA-OIG, DCIS, and the FBI for their efforts in helping bring much-needed oversight and reform to these companies.”
“The results of this investigation are indicative of the law enforcement community’s unwavering commitment to protecting the aerospace supply chain,” said NASA Inspector General Paul K. Martin. “I am very proud of the central role the NASA OIG played in unraveling the test falsification scheme.”
“Our partners at NASA and in the military – as well as hundreds of private businesses – put their faith in the integrity of this supplier and the structural integrity of its products,” said Special Agent in Charge Loren ‘Renn’ Cannon of the FBI’s Portland Field Office. “For almost two decades, this company’s greed violated that trust. Today’s proposed resolution is an important step to repairing the harm done.”
“Today’s proposed resolution with SPI exhibits the unending commitment of DCIS and its investigative partners to bring to justice those who seek to defraud the Department of Defense,” said Special Agent in Charge Bryan Denny of the DCIS Western Field Office. “Those who purposely disregard requirements imposed to assure the quality of materials provided to our military will be investigated and prosecuted to the fullest extent of the law.”
According to court documents, SPI has agreed to plead guilty to one count of mail fraud, and SEI has entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today charging the company with mail fraud. As part of the plea agreement, SPI has agreed to pay $34.1 million in combined restitution to NASA, the Department of Defense’s Missile Defense Agency (MDA), and commercial customers. SPI has also agreed to forfeit $1.8 million in ill-gotten gains. The plea agreement remains subject to acceptance by the court at a plea hearing currently scheduled for May 13, 2019, before U.S. District Judge Liam O’Grady. The DPA with SEI is conditioned on the court’s acceptance and SPI’s satisfaction of the plea agreement’s terms.
SPI also agreed to pay $34.6 million as part of a related civil settlement to resolve its liability under the False Claims Act for causing a government contractor to invoice MDA and NASA for aluminum extrusions that did not comply with contract specifications. Government contractors purchased aluminum extrusions for use on rockets for NASA and missiles provided to the MDA. Under the terms of the civil settlement agreement, SPI will satisfy the $34.6 million settlement through credits totaling $23.6 million for its restitution payments as part of the criminal plea agreement, plus additional payments of $6 million to NASA and $5 million to the MDA.
According to the companies’ admissions, employees at SPI facilities in the Portland area generally altered the tests in one of two ways. First, from in or about 1996 through in or about 2006, an SPI plant manager led a scheme to make thousands of handwritten alterations to failing test results by changing failing numbers that fell below the minimum required test results to appear to be passing. Those numbers were then typed onto a certification and provided to customers. Second, from in or about 2002 through September 2015, Dennis Balius, the SPI testing lab supervisor, led a scheme to alter tests within SPI’s computerized systems and provide false certifications with the altered results to customers. Balius also instructed employees to violate other testing standards, such as increasing the speed of the testing machines or cutting samples in a manner that did not meet the required specifications. Balius pleaded guilty in July 2017 and was sentenced to three years in prison and ordered to pay over $170,000 in restitution.
According to court documents, the SPI employees generally engaged in these practices to conceal the inconsistent quality of aluminum extrusions produced by SPI, avoid the costly scrapping of metal and accompanying production delays, improve SPI’s and SEI’s profits, and receive bonuses that were calculated in part based on a production metric.
In addition, the companies admitted that SPI’s customers included U.S. government contractors who in turn provided aluminum extrusions produced by SPI to NASA and the MDA for use in “frangible joints” in rockets provided to NASA and missiles provided to the MDA, respectively. According to court documents, the replacement cost of frangible joints provided to the MDA that included SPI extrusions is approximately $15.3 million, and NASA incurred approximately $9 million in investigative and other costs to determine the impact of SPI extrusions on NASA operations.
As described in the civil settlement agreement, NASA maintains that SPI’s manufacturing processes lacked sufficient controls and produced extrusions unable to pass mechanical properties testing. NASA further maintains that it identified SPI’s out-of-specification extrusions as the cause of two failed rocket launches, which resulted in the loss of important scientific missions. SPI disputes NASA’s positions, and except for those facts admitted to in the DPA and the plea agreement, the claims resolved by the civil settlement are allegations only. There has been no determination of liability. To protect the government supply chain, NASA both suspended SPI from government contracting and proposed SPI for debarment government-wide. The exclusion from government contracting has been effective since Sept. 30, 2015.
A number of significant factors contributed to the Department’s criminal resolution with the companies. Among these, the companies received significant credit for their cooperation with the Department’s investigation and their engagement in extensive remedial measures to address the misconduct, including the termination and severance of employees who were involved, the implementation of state-of-the-art equipment to automate the tensile testing process, company-wide audits at all U.S. tensile labs, increased resources devoted to compliance and revamping internal quality controls and quality audit processes. However, the companies did not receive more significant mitigation credit, either in the penalty or the form of resolution, because the companies did not voluntarily self-disclose the full extent of their misconduct to the Department.
This case was investigated by NASA Office of Inspector General, FBI’s Portland Field Office, and DCIS. The NASA Launch Services Program and Office of the General Counsel Acquisition Integrity Program provided extensive cooperation and assistance throughout the investigation.
Trial Attorneys Emily Scruggs and Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ryan S. Faulconer are prosecuting the criminal case, with previous assistance from former Trial Attorneys Thomas Hall and Jennifer Ballantyne. Trial Attorneys Allison Cendali and Greg Pearson of the Civil Division’s Fraud Section handled the civil case.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-vns/case/SAPA or call (888) 549-3945.
A Washington State Man Was Sentenced to 55 years on Child Exploitation ChargesRead the Press Release
A man from Shoreline, Washington was sentenced yesterday to 55 years’ imprisonment for his role in an international child pornography ring, announced United States Attorney Matthew Schneider.
Schneider was joined in the announcement by Special Agent in Charge Timothy Slater of the Federal Bureau of Investigation, Detroit Division.
“The way that these offenders worked together to manipulate innocent girls for their own sexual gratification is truly horrific. And, the way that this defendant in particular extorted these children is especially heinous,” said United States Attorney Schneider. “Parents, please speak with your children about sextortion and cyberbullying so we can keep all of our children safe.”
Sentenced was Michael Berenson, age 30. In addition to his prison sentence and term of supervised release, Berenson was ordered to pay 5,000 in restitution to each of the identified victims, reaching a total of over 80,000 dollars. United States District Judge Judith Levy of the Eastern District of Michigan imposed the sentence.
According to court records, from at least January 2012 to November 2014, Berenson was part of a group of individuals that worked together, using the Internet, to entice minor females to produce child pornography via web camera on an unmonitored chatroom-based website. The men recruited the victims from common social media platforms by pretending to be teenage boys interested in chatting with the girls in real time. Once the victims arrived in the chatrooms, the group—all pretending to be teenagers—worked together to build trust and convince the children to engage in sexually explicit conduct on web cameras. Group members then recorded that activity. The girls were unaware that the men were making recordings. Berenson is the 25th defendant to be sentenced here in the Eastern District of Michigan for conspiring to exploit children on this unmonitored website.
Berenson participated in this group from its inception in 2012 until this particular group ceased activity. Berenson however, remained active, targeting minors, directing them to engage in sexual acts, recording such acts and blackmailing the minors until the execution of a search warrant at his residence on May 10, 2017. Berenson also encouraged girls to self-harm and recorded them doing so.
Berenson admitted to victimizing over 1,000 minor girls over the course of the last 10 years. Some of the girls were as young as nine years old.
To date, a forensic examination of his devices recovered over 9,600 videos and images of child pornography and 105,347 child exploitive videos and images. Berenson recorded over 1,128 hours of videos of child pornography and over 3,000 hours of child exploitive conduct. Sixteen parents and victims were present for the sentencing hearing and made statements to the Court. Among those present was Carol Todd, the mother of Amanda Todd who died by suicide in October of 2012. A website dedicated to Amanda Todd can be found at http://www.amandatoddlegacy.org/. The FBI has so-far identified approximately 20 victims in the United States.
Assistant United States Attorneys April Russo and Kevin Mulcahy of the Eastern District of Michigan prosecuted the case. The FBI’s Detroit Field Office and Southeast Michigan Trafficking and Exploitation Crimes task force investigated the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Monday 22 April 2019
Yacht Owner Pleads Guilty to Child Pornography for Secretly Recording Nude Videos of MinorsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that William Richard Hilliard, Jr., 49, of Cherryville, N.C., pleaded guilty to child pornography charges for secretly recording nude videos of underage females aboard his yacht. U.S. Magistrate Judge W. Carleton Metcalf presided over Hilliard’s guilty plea.
According to the indictment and filed plea documents, Hilliard was arrested on June 11, 2018, by Myrtle Beach, South Carolina law enforcement officers on charges of video voyeurism. Hilliard was the owner of a yacht called “Yachts O’ Trouble,” and he had been discovered secretly recording nude videos of unsuspecting females aboard his yacht, including minor and adult guests. Court records show that as a result of the events surrounding his arrest, the FBI coordinated an extensive multi-state and multi-agency investigation.
As Hilliard admitted in court today, law enforcement discovered that, over the course of eight to ten years, Hilliard had secretly produced multiple secret recordings of at least 16 child victims at various locations in North and South Carolina, including aboard his yacht, in his homes, in various hotel rooms, and elsewhere. Court records also show that, at times, Hilliard produced secret recordings of victims he had hired as babysitters for his young children, and used multiple hidden devices to record his victims from different angles while they were using the shower and changing clothes. Some of the victims were as young as five years old.
Hilliard pleaded guilty to production of child pornography, which carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine, and possession of child pornography, which carries a maximum prison term of 20 years and a $250,000 fine.
In making today’s announcement, U.S. Attorney Murray thanked the FBI’s Charlotte Division, the Myrtle Beach Police Department, the Horry County Police Department, and the Cleveland County Sheriff’s Office for their investigation of this case with assistance from FBI Knoxville, FBI Birmingham, Homeland Security Investigations, the Cherryville Police Department and the Gastonia Police Department. The U.S. Attorney’s Office in Asheville is in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wood River Man Charged with Stealing 135 FirearmsRead the Press Release
A federal grand jury has returned an indictment against Bradley N. Boswell, 30, of Wood River, Illinois, charging Boswell with stealing firearms from a federal firearms licensee, United States Attorney for the Southern District of Illinois Steven D. Weinhoeft, announced today. The charges allege that in early February 2019, Boswell stole 135 firearms from Benbow City Sports, which is a licensed federal firearms dealer. The indictment also charged Boswell with possessing the same firearms after being convicted of a felony.
Each charge carries a maximum penalty of 10 years in prison, up to three years of supervised release, and a fine up to $250,000.
Boswell appeared in United States District Court in East St. Louis on April 18, 2019, for his initial appearance and arraignment on the indictment. At the conclusion of his court appearance, Boswell was ordered to remain in the custody of the United States Marshal, pending a detention hearing, which is set for April 23, 2019.
An indictment is a formal charge against a defendant. Under the law, that charge is merely an accusation and the defendant is presumed innocent unless proven guilty.
This prosecution is the result of a collaborative investigation by the Wood River Police Department and the Bureau of Alcohol, Tobacco, Firearms, & Explosives.
Wisconsin Resident Waheba Dais Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
A Wisconsin woman pleaded guilty today to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. Assistant Attorney General for National Security John C. Demers, U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin and Acting Special Agent in Charge Michelle Sutphin of the FBI's Milwaukee Field Office announced the plea.
Waheba Issa Dais, 46, pleaded guilty to one count of attempting to provide material support to ISIS, based upon her conduct in support of the terrorist organization in 2018.
According to admissions made in connection with her plea, Dais used hacked Facebook accounts in order to support ISIS. Using these accounts, she pledged her allegiance to ISIS on numerous occasions, communicated with and encouraged other ISIS supporters who described their plans to conduct attacks, disseminated information about explosives and biological weapons, and attempted to recruit new members to ISIS’s cause. For example, Dais posted videos providing step-by-step instructions on how to make an explosive belt and TNT, and she provided a detailed recipe for the poison Ricin. Dais also maintained encrypted social-media channels, where she posted messages encouraging ISIS supporters who could not travel to ISIS-controlled lands to conduct terrorist attacks in their home countries. Through those encrypted channels, she also provided detailed information about explosives, guns, attack planning, and target selection.
Dais faces a maximum term of imprisonment of 20 years, a maximum life term of supervised release, and a maximum fine of $250,000. Her sentencing is set for Sept. 12, 2019 before Judge Pamela Pepper.
This conviction is the result of an extensive investigation by the Federal Bureau of Investigation’s Milwaukee Field Office. The case is being prosecuted by Assistant United States Attorney Rebecca Taibleson and Trial Attorney Jennifer Burke of the National Security Division.
Woman Facing Federal Drug Trafficking Charge Arising Out of DEA Seizure of 18 Pounds of Fentanyl in New MexicoRead the Press Release
WOMAN FACING FEDERAL DRUG TRAFFICKING CHARGE ARISING
OUT OF DEA SEIZURE OF 18 POUNDS OF FENTANYL IN NEW MEXICO
ALBUQUERQUE – A U.S. Magistrate Judge sitting in Albuquerque, N.M., found probable cause to support a criminal complaint charging Daniela Cota-Guitimea, with a fentanyl trafficking offense. The charge arises from a DEA seizure of approximately 18.144 pounds of fentanyl in Albuquerque on April 16, 2019. Cota-Guitimea was remanded into custody pending trial based on judicial findings that she poses a risk of flight and a danger to the community.
The DEA arrested Cota-Guitimea, 21, a U.S. citizen who resides in Mexico, after seizing approximately 8.10 gross kilograms (18.144 pounds) of fentanyl from Cota-Guitimea’s luggage during an interdiction investigation in Albuquerque.
The penalty for a conviction on the offense charged in the criminal complaint is a statutory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations, and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the DEA, and Assistant U.S. Attorney Matthew T. Nelson is prosecuting the case.
Valley View, Texas Woman Sentenced to 12 Months Probation, $1,000 Restitution for Theft from Gaming Establishments on Indian LandsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jeannie Irene Stegner, age 52, of Valley View, Texas, was sentenced to 1 year probation and ordered to pay $1000.00 in restitution for Theft From Gaming Establishments On Indian Lands, in violation of Title 18, United States Code, Section 1167(a). The charges arose from an investigation by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs.
The Information alleged that on June 9, 2018, in the Eastern District of Oklahoma, the defendant embezzled, abstracted, purloined, willfully misapplied, and took and carried away property of a value of $1,000.00 or less belonging to the Chickasaw Nation WinStar World Casino and Resort, an Indian gaming establishment operated by the Chickasaw Nation, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States.
U.S. Department of Justice Remains Focused on Purchase and Pennyrile Regions with Addition of New ProsecutorRead the Press Release
PADUCAH, Ky. – United States Attorney Russell M. Coleman today announced the addition of Raymond Dykie McGee as a Special Assistant United States Attorney in the U.S. Attorney’s Paducah Branch Office, another example of the U.S. Department of Justice’s commitment to the Purchase and Pennyrile Regions.
“We are blessed as an office and federal law enforcement community to continue our longstanding relationship with the McCracken Commonwealth’s Attorney’s Office by adding Mr. McGee to our ranks,” said U.S. Attorney Russell Coleman. “I am committed to serving all 53 counties of our district, from Oldham County to our River Counties and his talent and experience is welcomed.”
Mr. McGee joins three full-time Assistant United States Attorneys and a legal assistant in the Paducah branch office, making it the most heavily-staffed since it was established in 2001. The addition of Mr. McGee will continue to strengthen working relationships with state prosecutors and local law enforcement agencies in the region while he continues to prosecute felony cases in state court as First Assistant Commonwealth’s Attorney for the 2nd Judicial Circuit (McCracken County).
The allocation of prosecutorial resources in the Paducah Branch Office is closely-tied to robust activity by the Bureau of Alcohol, Tobacco, and Firearms (ATF) and an increased federal law enforcement presence which includes the recent announcement by the U.S. Drug Enforcement Administration (DEA) of the first ever opening of an office in Paducah.
McGee joins Assistant United States Attorney Seth Hancock, Branch Chief of the Paducah Office and Assistant United States Attorneys Madison Sewell and Leigh Ann Dycus in prosecuting federal cases in United States District Courts located in Paducah, Owensboro, and Bowling Green.
U.s. Citizen Residing in Honduras Extradited to Face Federal Charges in New MexicoRead the Press Release
Charges Arise Out of Scheme to Defraud Bank in Deming, N.M.
ALBUQUERQUE – A U.S. citizen residing in Honduras has been extradited to the United States, and transferred to the District of New Mexico, where he stands accused of bank fraud, wire fraud, and conspiracy charges arising out of a scheme to defraud a bank in southern New Mexico, as well as other financial institutions and individual investors.
The Honduras Transnational Criminal Investigative Unit (TCIU) of Homeland Security Investigations (HSI) arrested Bruce Beckner, 56, on a federal indictment on March 7, 2019, at the San Pedro Sula airport in Honduras. At the time of his arrest, Beckner had been a resident of Roatan, Honduras, for several years. Beckner remained incarcerated in Honduras until Honduras approved his extradition on April 11, 2019, and he was transferred into U.S. custody on April 16, 2019.
Beckner was arrested by HSI Albuquerque on the night of April 16, 2019, at the Albuquerque International Sunport, after he was extradited and flown in from Tegucigalpa under escort by HSI Honduras. Beckner made his initial appearance in federal court in Albuquerque, N.M., on April 17, 2019.
This morning, Beckner was arraigned on the indictment, and entered a not guilty plea. During this morning’s proceedings, Beckner waived his right to a detention hearing and was ordered detained pending trial.
The indictment alleges that, from 2000 to 2011, Beckner and a co-defendant, Arthur Herlihy, 70, of Santa Fe, N.M., engaged in a fraudulent scheme to develop a business plan and secure financing to renovate a truck stop in Deming. It further alleges that Beckner obtained business loans by making misrepresentations; made false statements to induce investors to invest in the truck stop; and diverted substantial portions of those funds for his personal benefit.
Herlihy pled guilty in Feb. 2017, to making a false statement to a bank on a loan document, and was sentenced in Aug. 2017
If convicted on the charges in the indictment, Beckner faces the following maximum statutory penalties: 30 years of imprisonment on the bank fraud charge; 20 years of imprisonment on the wire fraud charge; and a maximum of 30 years of imprisonment on the conspiracy charge. Charges in indictments are only accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case was investigated by Homeland Security Investigations, IRS Criminal Investigation, and the Special Investigations Division of the New Mexico Office of the Attorney General. Assistant U.S. Attorney Sean J. Sullivan is prosecuting the case. The U.S. Department of Justice’s Office of International Affairs, HSI Honduras TCIU, and HSI ICE Country Attaché in Honduras assisted with the extradition.
U.S. Attorney’s Office Commemorates National Crime Victims’ Rights WeekRead the Press Release
FARGO – U.S. Attorney Drew H. Wrigley announced on April 18, 2019, the U.S. Attorney’s Office for the District of North Dakota hosted a National Crime Victims’ Rights Week Awards Ceremony to raise awareness about crime victims’ rights and to recognize individuals in the state who provide outstanding services to victims. Victim assistance awards were presented to the following individuals:
Assistant United States Attorney Victim Assistance Award, Matthew Greenley, U.S. Attorney’s Office, Fargo.
Support Staff Victim Assistance Award, Nicole Olson, Paralegal Specialist, U.S. Attorney’s Office, Fargo.
Victim-Witness Advocate Assistance Award, Carly Mahoney, Victim Specialist, FBI, Bismarck.
Special Agent Victim Assistance Award, Jim Shaw, Special Agent, Bureau of Criminal Investigation, Fargo and Tim Litzinger, Special Agent, Homeland Security Investigations, Grand Forks.
State Law Enforcement Victim Assistance Award, Jesse Smith, Special Agent, Bureau of Criminal Investigation, Fargo.
Crime Victim Service Legacy Assistance Award, Jeanne Thomas, Victim Specialist, FBI, Grand Forks.
Special Courage Victim Assistance Award, Lindsey Sholl, Fargo.
Special U.S. Attorney Recognition, Lisa Hanson, Fargo.
The Office for Victims of Crime (OVC) of the U.S Department of Justice leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week, April 7-13, by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme –Honoring Our Past. Creating Hope for the Future. – celebrates the progress made by those before us as we look to a future of crime victim services that is even more inclusive, accessible, and trauma-informed.
Two More Plead Guilty for Roles in Interstate Marijuana Trafficking ConspiracyRead the Press Release
PORTLAND, Ore.—In related criminal cases, Cole Williams Griffiths and Raleigh Dragon Lau pleaded guilty today for their roles in a conspiracy to traffic marijuana grown in Hood River, Oregon and Portland to Virginia, Texas, and Florida.
Drug proceeds, in the form of bulk U.S. currency, were returned to Oregon via U.S. mail and passenger luggage on commercial airlines. As part of this investigation, federal authorities have seized approximately 11,000 marijuana plants, 546 pounds of processed marijuana, more than $2.8 million in cash, 51 firearms, 26 vehicles, trailers, pieces of heavy equipment, a yacht, and three houses used as marijuana grow sites, all since August 2017.
Griffiths, 30, of Hood River, and Lau, 33, of Portland, both pleaded guilty to conspiring to manufacture, possess with intent to distribute, and distribute marijuana, maintaining drug-involved premises, and money laundering.
Conspiring to manufacture, possess with intent to distribute, and distribute marijuana and maintaining drug involved premises carries a maximum sentence of life in prison, a mandatory minimum sentence of 10 years in prison, a $10 million fine, and a lifetime of supervised release. Money laundering carries a max sentence of 20 years in prison, a $250,000 fine, and three years’ supervised release.
Griffiths and Lau will be sentenced on August 5 and 7, 2019, respectively, before U.S. District Court Judge Robert E. Jones.
As part of their plea agreements, Griffiths and Lau have agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing.
Co-defendants Brittany Lesanta Kizzee, 28, of Houston, Texas and Paul Eugene Thomas, 38, of Portland, pleaded guilty on November 27, 2018 and April 10, 2019, respectively. Thomas will be sentenced on August 6, 2019, and Kizzee will be sentenced on August 7, 2019. Co-defendant Trent Lamar Knight, 30, of Houston, is scheduled to plead guilty on May 8, 2019. Finally, co-defendant Jody Tremayne Wafer, 29, of Houston, is scheduled for trial on June 18, 2019.
This case was investigated by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Homeland Security Investigations and the FBI. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This case was brought as part of the Justice Department’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the department’s strategy for reducing the availability of drugs in the U.S. OCDETF was established in 1982 to mount a comprehensive attack on drug trafficking by disrupting and dismantling major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in coordination with state and local law enforcement.
Trip to McDonald's with a Loaded Assault Rifle Leads to 9 Year Prison Sentence for Convicted FelonRead the Press Release
Antoine D. Johnson, Jr., 28, of East St. Louis, Illinois, has been sentenced to 9 years in prison, the United States Attorney for the Southern District of Illinois, Steven D. Weinhoeft, announced today. Johnson had been charged in a federal indictment with one count of being a convicted felon in possession of a firearm. He pleaded guilty to the charge in January 2019 and faced a maximum sentence of 10 years in prison.
The federal case against Johnson arose on February 18, 2018, after police received a report of multiple shots fired into a family-occupied home in Washington Park earlier that morning, with injuries to two adults. During the ensuing investigation, officers with the East St. Louis Police Department surrounded a vehicle as it sat idling in the drive thru of the McDonald’s restaurant on State Street. Johnson was sitting in the front passenger seat of the vehicle holding a loaded Norinco SKS semi-automatic assault rifle. After Johnson and the driver refused to comply with commands to exit the vehicle, and upon observing Johnson’s rifle pointed in their direction, the officers opened fire. The driver attempted to flee but crashed the car into a pole beside the restaurant. Both occupants of the vehicle were arrested at the scene. Johnson sustained a gunshot wound to his hip and shrapnel damage to one of his eyes. The driver and the responding officers were uninjured.
At the time of his offense, Johnson was on probation in St. Clair County for a 2015 aggravated robbery conviction. Investigators were able to link both Johnson and the rifle to the Washington Park shooting, and as part of his plea deal with the United States, Johnson admitted firing 11 rounds into the residence on February 18 and agreed to plead guilty in St. Clair County Circuit Court to one count of aggravated battery with a firearm. His sentence in that case is expected to run consecutively to his federal sentence.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was jointly investigated by the East St. Louis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorneys James G. Piper, Jr., and Alexandria M. Burns.
Texas family charged in scheme to obtain multiple Masters tickets for resaleRead the Press Release
AUGUSTA, Ga: Four members of a Texas family have been charged in a scheme to fraudulently obtain multiple Masters Golf Tournament tickets.
Stephen Michael Freeman, of Katy, Texas, is charged with Conspiracy to Commit Mail and Wire Fraud and Aggravated Identity Theft in an information filed with U.S. District Court in Augusta, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Freeman’s parents, Steven Lee Freeman and Diane Freeman, of Helotes, Texas, and sister, Christine Oliverson, of San Antonio, Texas, each are charged with Conspiracy to Commit Mail and Wire Fraud.
The charges carry possible penalties of up to 20 years in prison along with substantial monetary fines. Any defendants charged are presumed innocent unless and until proven guilty.
According to court documents, the four defendants used names and addresses from a purchased bulk mailing list to create multiple fraudulent accounts in the Augusta National Golf Club’s online ticket application system. All this occurred without the knowledge or permission of the individuals whose identities were used.
Then, if any of those names were chosen to receive Masters tickets and the defendants were notified via the email addresses provided for them, Stephen Michael Freeman would create fake identification documents to persuade the Augusta National to change the winner’s mailing address to one that was under control of the conspiracy. Once the defendants received the tickets at those addresses via U.S. Mail, they would then resell the tickets at a substantial profit.
“The Masters is one of the world’s great sporting events, and tickets to the tournament are cherished by their fortunate recipients,” said Southern District of Georgia U.S. Attorney Bobby L. Christine. “Using fraud and deceit to circumvent the Augusta National’s generous lottery system is despicable, and those who follow the rules in hopes of winning tickets deserve better than to have their chances diminished by profiteering con artists.”
“Because of the defendants’ greed, they now face substantial prison time if convicted of the alleged crimes,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to investigate anyone who tries to circumvent a fair process, whether it is the Masters or any other private or public entity.”
The case was investigated by the FBI, and is being prosecuted for the United States by Assistant U.S. Attorney Tara Lyons.
Texas Couple Each Sentenced to Seven Years in Prison for Forced Labor and Related OffensesRead the Press Release
U.S. District Court Judge Reid O’Connor sentenced defendants Mohamed Toure, 58, and Denise Cros-Toure, 58, of Southlake, Texas, to seven years in prison each and ordered them to pay $288,620.24 in restitution. A federal jury convicted the defendants of forced labor, conspiracy to commit alien harboring, and alien harboring on Jan. 11 following a four-day trial. As a consequence of their convictions, the defendants, who are citizens of Guinea and lawful permanent residents of the United States, may lose their U.S. immigration status and be removed to Guinea pursuant to law. Today’s sentences were announced by Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, and Special Agent in Charge Jeffrey McGallicher of the U.S. Department of State’s Diplomatic Security Service (DSS) Houston Field Office.
“I hope that today’s sentence brings some measure of justice and healing to the victim, who suffered untold trauma as a result of the defendants’ heinous crimes. The defendants stole her childhood and her labor for years, enriching themselves while leaving her with pain and an uncertain future,” said Assistant Attorney General Eric Dreiband. “I am very grateful to all who supported, and continue to support, the victim as she attempts to rebuild her life. The Department of Justice will continue to investigate and vigorously prosecute human traffickers and vindicate the rights of their victims.”
“Forced labor trafficking cases are notoriously difficult to prosecute – in part because victims are often afraid to speak out,” said U.S. Attorney Erin Nealy Cox. “It took tremendous courage for this young woman to share her story at trial. She was brought to this country at a young age, pressured to stay quiet, and forced to work for this family without pay for 16 years. I want to commend her, as well as the witnesses who helped shine a light on her circumstances. If we want to wipe out human trafficking, we need to remind witnesses to speak up, and ask the community to remain alert.”
“Today’s sentence sends a strong message to those abusing and exploiting individuals: you will be held responsible for your vicious acts,” said Jeffrey McGallicher, Special Agent in Charge of the DSS Houston Field Office. “The Diplomatic Security Service wields a global law enforcement reach, is committed to investigating these crimes wherever they occur, and remains dedicated to its partnerships in pursuing justice for the victims of human trafficking.”
According to the evidence at trial, the defendants, members of wealthy and powerful Guinean families, arranged for the victim, then a young child from a rural Guinean community, to travel alone from her home in West Africa to the defendants’ home in Southlake, Texas, in early 2000. Once in the United States, the defendants forced the victim to cook, clean, and take care of their biological children, some of whom were close in age to the victim, without pay for the next 16 years.
Evidence at trial further established that the defendants physically, emotionally, and verbally punished the young victim when she disobeyed or otherwise failed to perform the required labor to their satisfaction. For example, the defendants called the victim a “dog,” “slave,” and “worthless.” They repeatedly hit her on multiple occasions, including with an electrical cord. They forced her to sleep alone in a nearby park as punishment, abused her by shaving her head and washing her outside with a hose, and rendered her completely dependent on them for everything. They isolated her from her family and society and prevented her from receiving any education, while their own children attended school and college.
The U.S. Department of State’s Diplomatic Security Service, Houston Field Office, investigated the case. It was prosecuted by Trial Attorney Rebekah Bailey and Special Litigation Counsel William Nolan of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit and Assistant U.S. Attorney Alex Lewis of the Northern District of Texas.
If you know someone who may be a victim of trafficking or otherwise believe you have information pertaining to human trafficking, please call the National Human Trafficking Hotline at 1-888-373-7888.
Texas Couple Each Sentenced to Seven Years in Prison for Forced Labor and Related OffensesRead the Press Release
U.S. District Court Judge Reid O’Connor sentenced defendants Mohamed Toure, 58, and Denise Cros-Toure, 58, of Southlake, Texas, to seven years in prison each and ordered them to pay $288,620.24 in restitution. A federal jury convicted the defendants of forced labor, conspiracy to commit alien harboring, and alien harboring on Jan. 11 following a four-day trial. As a consequence of their convictions, the defendants, who are citizens of Guinea and lawful permanent residents of the United States, may lose their U.S. immigration status and be removed to Guinea pursuant to law. Today’s sentences were announced by Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, and Special Agent in Charge Jeffrey McGallicher of the U.S. Department of State’s Diplomatic Security Service (DSS) Houston Field Office.
“I hope that today’s sentence brings some measure of justice and healing to the victim, who suffered untold trauma as a result of the defendants’ heinous crimes. The defendants stole her childhood and her labor for years, enriching themselves while leaving her with pain and an uncertain future,” said Assistant Attorney General Eric Dreiband. “I am very grateful to all who supported, and continue to support, the victim as she attempts to rebuild her life. The Department of Justice will continue to investigate and vigorously prosecute human traffickers and vindicate the rights of their victims.”
“Forced labor trafficking cases are notoriously difficult to prosecute – in part because victims are often afraid to speak out,” said U.S. Attorney Erin Nealy Cox. “It took tremendous courage for this young woman to share her story at trial. She was brought to this country at a young age, pressured to stay quiet, and forced to work for this family without pay for 16 years. I want to commend her, as well as the witnesses who helped shine a light on her circumstances. If we want to wipe out human trafficking, we need to remind witnesses to speak up, and ask the community to remain alert.”
“Today’s sentence sends a strong message to those abusing and exploiting individuals: you will be held responsible for your vicious acts,” said Jeffrey McGallicher, Special Agent in Charge of the DSS Houston Field Office. “The Diplomatic Security Service wields a global law enforcement reach, is committed to investigating these crimes wherever they occur, and remains dedicated to its partnerships in pursuing justice for the victims of human trafficking.”
According to the evidence at trial, the defendants, members of wealthy and powerful Guinean families, arranged for the victim, then a young child from a rural Guinean community, to travel alone from her home in West Africa to the defendants’ home in Southlake, Texas, in early 2000. Once in the United States, the defendants forced the victim to cook, clean, and take care of their biological children, some of whom were close in age to the victim, without pay for the next 16 years.
Evidence at trial further established that the defendants physically, emotionally, and verbally punished the young victim when she disobeyed or otherwise failed to perform the required labor to their satisfaction. For example, the defendants called the victim a “dog,” “slave,” and “worthless.” They repeatedly hit her on multiple occasions, including with an electrical cord. They forced her to sleep alone in a nearby park as punishment, abused her by shaving her head and washing her outside with a hose, and rendered her completely dependent on them for everything. They isolated her from her family and society and prevented her from receiving any education, while their own children attended school and college.
The U.S. Department of State’s Diplomatic Security Service, Houston Field Office, investigated the case. It was prosecuted by Trial Attorney Rebekah Bailey and Special Litigation Counsel William Nolan of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit and Assistant U.S. Attorney Alex Lewis of the Northern District of Texas.
If you know someone who may be a victim of trafficking or otherwise believe you have information pertaining to human trafficking, please call the National Human Trafficking Hotline at 1-888-373-7888.
Tax Preparer Sentenced for Falsifying Tax Returns and Stealing IdentitiesRead the Press Release
St. Louis, MO – Kela Burns, 36, of Bridgeton, was sentenced to 44 months in prison for her role in preparing fraudulent tax returns; access device fraud; social security fraud; bank fraud; and, aggravated identity theft. Burns appeared today before U.S. District Judge Rodney W. Sippel.
According to court documents, Burns fraudulently prepared federal tax returns and used identifying information of others through her business, Priority Tax Services between January 1, 2016 and April 15, 2018. In addition, she fraudulently used social security numbers not assigned to her in order to commit bank fraud between May 27, 2016 and November 16, 2016.
Burns pled guilty in December 2018 to seven counts – one count of preparing a fraudulent tax return; one count of access device fraud; two counts of social security fraud; two counts of bank fraud; and one count of aggravated identity theft. Additional court filings revealed that after her guilty plea, Burns continued to file fraudulent tax returns on behalf of previous clients of her tax preparation business. As a result, of the continued criminal conduct, Burns’ lost credit for acceptance of responsibility, and was remanded to the custody of the United States Marshal’s Service at the conclusion of the sentencing hearing instead of being permitted to surrender herself to the Federal Bureau of Prisons.
The case was investigated by the Internal Revenue Service – Office of Criminal Investigation, the Social Security Administration – Office of Inspector General, and the Treasury Inspector General for Tax Administration. Assistant United States Attorney Tracy Berry is handling the case for the U.S. Attorney’s Office.
Stuart Physician Sentenced to Prison After Having Been Convicted at Trial of Health Care FraudRead the Press Release
Yesterday, a doctor who previously worked in Stuart, Florida, was sentenced to prison after having been convicted by a federal jury of committing repeated acts of health care fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ashley B. Moody, Florida Attorney General, made the announcement.
Sheetal Kanar Kumar, M.D., 48, formerly of Stuart, Florida, was found guilty by a trial jury, on February 15, 2019, of committing twenty-three counts of health care fraud (Case No. 18-14063-CR-Marra). U.S. District Judge Kenneth A. Marra, sitting in Fort Pierce, Florida, sentenced Dr. Kumar to a total of 24 months in prison, to be followed by 2 years of supervised release.
“No one has a license to defraud our health care system,” stated U.S. Attorney Fajardo Orshan. “Those individuals, like Dr. Kumar, who cast aside their professional responsibilities to pad their personal pockets with fraudulently obtained tax dollars will face serious consequences. We encourage the public to report suspected health care fraud to law enforcement. We must protect our vital healthcare programs from abuse.”
“Vulnerable patients sought out Dr. Kumar for critical medical treatment. Instead she was exploiting these individuals for personal gain,” said Shimon R. Richmond, Special Agent in Charge HHS-OIG. “We will continue to protect patients and federal healthcare programs by investigating individuals who seek to enrich themselves at the expense of beneficiaries and taxpayers.”
"The FBI and our partners devote vast resources to investigate, catch and prosecute those committing health care fraud," said Justin E. Fleck, Assistant Special Agent in Charge, FBI Miami. "To those fraudsters still bilking the system to line their pockets with illicit cash, know that we are committed to rooting out this kind of fraud and reclaiming money that was dishonestly obtained."
Attorney General Ashley Moody said, “Make no mistake, health care fraud is a serious crime that steals tax dollars and increases insurance rates. The Florida Attorney General’s Office will continue to work with our federal partners to protect Florida’s health care market and arrest, prosecute and convict anyone trying to defraud Medicaid and Medicare.”
According to the court record, including evidence introduced at trial, Dr. Sheetal Kumar owned and operated the medical practice Advanced Healthcare for Women in Stuart, Florida. Dr. Kumar was an obstetrician and gynecologist who treated incontinence. From at least as early as January 2014, until July 2017, Dr. Kumar submitted or caused the fraudulent submissions of claims to Medicare, Medicaid and private insurance companies. The fraudulent claims sought money for specific health care benefits, items, and services that were not provided as billed. As a result of such false and fraudulent claims, Medicare, Medicaid and private insurance companies, made payments in the approximate amount of $637,000.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and Florida Attorney General’s Medicaid Fraud Control Unit in this matter. This case was prosecuted by Assistant U. S. Attorneys Daniel E. Funk and Diana M. Acosta.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
St. Joseph Man Sentenced for Meth, Stolen Firearm Used in Two Recent ShootingsRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., man was sentenced in federal court today for illegally possessing methamphetamine and a stolen firearm that had been used in two recent shootings.
Jeremy G. Helton, 38, was sentenced by U.S. District Judge Howard F. Sachs to 11 years in federal prison without parole.
On Jan. 4, 2019, Helton pleaded guilty to possessing methamphetamine with the intent to distribute and to possessing a firearm in furtherance of a drug-trafficking crime.
Helton was asleep in the driver’s seat of a stolen Hyundai Elantra, which was obstructing a lane of traffic as it was sitting half on the grass and half on the roadway, at about 4:45 a.m. on May 28, 2018. When St. Joseph police officers arrived, the engine was running and the vehicle was in gear with the brake lights illuminated. Officers used their vehicles to box in Helton’s vehicle, then an officer focused his spotlight on Helton, who started to wake up.
As officers opened the driver’s door, Helton started thrashing about grabbing for his waistband, the steering wheel, windshield wiper controls, and the gear shifter. Officers were able to pull him from the vehicle as another officer took the vehicle out of gear and turned off the engine. As Helton was being removed from the vehicle, a loaded Sig Sauer .40-caliber pistol fell to the ground. The firearm had previously been reported as stolen.
Officers arrested Helton and searched him. Officers found a large baggie with approximately 47.8 grams of methamphetamine in his shorts pocket, as well as a glass pipe with methamphetamine residue and a digital scale. Officers also searched Helton’s vehicle and found four cell phones, a box of ammunition, two more glass pipes, and a suspected cutting agent for the methamphetamine.
Helton, who has a prior felony conviction for being a felon in possession of a firearm, told officers, “Felon or not, I’m always going to have a gun on me.” According to court documents, investigators later learned the firearm recovered from Helton was used in two shootings in St. Joseph a few days earlier, on May 20 and May 25, 2018, based upon a comparison of recovered cartridge casings from the shootings.
Helton was on probation supervision for a Missouri felony non-support case at the time of these federal offenses. In addition to his prior felony conviction for being a felon in possession of a firearm, Helton has previously been convicted of the felony offenses of non-support, fraudulent use of a credit device, first-degree tampering (twice) and receiving stolen property (two counts).
This case was prosecuted by Assistant U.S. Attorneys Ashleigh A. Ragner and Alison D. Dunning. It was investigated by the St. Joseph, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.Scottsdale, Arizona Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Javier Ivan Torres, age 29, of Scottsdale, Arizona, entered a guilty plea to Possession With Intent To Distribute Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 and not more than life imprisonment, up to a $10,000,000.00 fine, or both.
The Indictment alleges that on or about December 27, 2018, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Drug Enforcement Administration.
The Honorable Steven P. Shreder, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Ryan Heatherman represented the United States.
School Owner Indicted on Charges of Defrauding Department of Veterans Affairs Program Dedicated to Rehabilitating Disabled Military VeteransRead the Press Release
WASHINGTON – The owner of a physical security school has been indicted by a federal grand jury for defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with service-connecting disabilities and for making false statements to the VA.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
Francis Engles, 63, of Bowie, Maryland, was charged on April 18, 2019, in a 20-count indictment by a federal grand jury in Washington, D.C. The indictment was unsealed today in the U.S. District Court for the District of Columbia.
The indictment alleges that Engles was the co-owner and operator of Engles Security Training School (Engles Security). Engles Security was located in Maryland and specialized in security guard and related courses. In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment (VR&E) program, which provides disabled U.S. military veterans with education and employment-related services. Thereafter, Engles submitted documents to the VA representing that he was providing 15 veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, Engles Security allegedly offered veterans far less than what Engles represented to the VA. Engles allegedly ended some classes after less than a month, even though he represented to the VA that the veterans’ classes would last for several months. In some instances, he allegedly offered only a few hours of class per day, while representing that the students would be in school for forty hours per week. According to the indictment, Engles frequently cancelled classes without notice or makeup classes and instructors showed up late and ended class early.
To advance and prolong his scheme, Engles allegedly created and sent to the VA “Certificates of Training” stating that veterans had completed courses that they in fact had not completed or, in some instances, had not taken at all. Similarly, Engles allegedly submitted letters to the VA falsely stating that the veterans had been employed by Engles’ private security business. Engles also allegedly instructed veterans to sign attendance sheets representing that they had attended class sessions, which they did not in fact attend.
Engles allegedly charged the VA thousands of dollars more for veterans’ courses than he charged non-veterans who took the same or similar courses. In total, the VA paid Engles Security over $300,000 for the purported education of 15 veterans.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Washington Field Office and the VA Office of Inspector General are investigating the case. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
School Owner Indicted for Defrauding Department of Veterans Affairs Program Dedicated to Rehabilitating Disabled Military VeteransRead the Press Release
The owner of a physical security school has been indicted by a federal grand jury for defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with service-connecting disabilities and for making false statements to the VA.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.
Francis Engles, 63, of Bowie, Maryland, was charged on April 18, 2019, in a 20-count indictment by a federal grand jury in Washington, D.C. The indictment was unsealed today.
The indictment alleges that Engles was the co-owner and operator of Engles Security Training School (Engles Security). Engles Security was located in Maryland and specialized in security guard and related courses. In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment (VR&E) program, which provides disabled U.S. military veterans with education and employment-related services. Thereafter, Engles submitted documents to the VA representing that he was providing 15 veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, Engles Security allegedly offered veterans far less than what Engles represented to the VA. Engles allegedly ended some classes after less than a month, even though he represented to the VA that the veterans’ classes would last for several months. In some instances, he allegedly offered only a few hours of class per day, while representing that the students would be in school for 40 hours per week. According to the indictment, Engles frequently cancelled classes without notice or makeup classes and instructors showed up late and ended class early.
To advance and prolong his scheme, Engles allegedly created and sent to the VA “Certificates of Training” stating that veterans had completed courses that they in fact had not completed or, in some instances, had not taken at all. Similarly, Engles allegedly submitted letters to the VA falsely stating that the veterans had been employed by Engles’ private security business. Engles also allegedly instructed veterans to sign attendance sheets representing that they had attended class sessions, which they did not in fact attend.
Engles allegedly charged the VA thousands of dollars more for veterans’ courses than he charged non-veterans who took the same or similar courses. In total, the VA paid Engles Security over $300,000 for the purported education of 15 veterans.
An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Washington Field Office and the VA OIG are investigating the case. Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Roff Man Sentenced to 80 Months for Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dalton Wayne Woods, age 25, of Roff, Oklahoma, was sentenced to 80 months’ imprisonment and 10 years of supervised release for Possession Of Certain Material Involving The Sexual Exploitation Of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2). The charges arose from an investigation by the Federal Bureau of Investigation.
The Indictment alleged that between on or about March 19, 2017, to on or about May 5, 2017, in the Eastern District of Oklahoma, the defendant knowingly possessed, attempted to possess and access with intent to view matters which contained visual depictions, of minors engaging in sexually explicit conduct, as that term is defined in Title 18, United States Code, Sections 2256(2)(A)-(B), and said visual depictions had been transported in interstate commerce by computer.
United States Attorney Brian J. Kuester said, “Protecting children from the sexual deviants who pursue them is a top priority of the Department of Justice. Those who participate in the despicable business of child pornography – including those who possess it – victimize children in the cruelest and most heinous and inhumane ways. Perpetrators use modern technology to obtain and view the abuse of children. The law enforcement community will use technology in every lawful way to pursue and bring to justice those who victimize children.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Edward Snow represented the United States.
Puerto Rican Man Sentenced for Heroin DistributionRead the Press Release
BOSTON – A Puerto Rican man was sentenced today in federal court in Worcester in connection with a heroin conspiracy.
Ivan Cruz-Rivera, 50, of Dorado, P.R., was sentenced to 76 months in prison and four years of supervised release. In December 2018, Cruz-Rivera and co-defendant Carlos Jimenez, 52, of Englishtown, N.J., were each convicted following a 12-day trial on charges of possession with intent to distribute heroin and distribution of more than 100 grams of heroin, and conspiracy to possess with intent to distribute heroin and to distribute heroin. Cruz-Rivera was found responsible for more than 100 grams of heroin with regards to the conspiracy charge. Jimenez is scheduled to be sentenced on April 24, 2019.
On Oct. 4, 2013, federal agents were surveilling garages on Union Street in Leominster where they believed drugs were being sold. The agents observed two men in a Lexus with New Jersey plates entering the property and leaving over 90 minutes later. After the Lexus left, an individual at the garage sold heroin to a cooperating source for $7,500.
A law enforcement officer subsequently followed the Lexus and stopped the vehicle in Sturbridge after the driver committed a traffic violation. The driver and passenger were visibly nervous – the driver’s hands were trembling and the passenger was avoiding eye contact and fidgeting. The driver provided a New Jersey license and conspicuously displayed his firefighter badge, which identified him as Carlos Jimenez, and the passenger, Cruz-Rivera, presented a Puerto Rican identification card. When questioned about the purpose of the trip to Massachusetts, Jimenez gave conflicting answers and said that they had just come from Lawrence. Jimenez denied having weapons or drugs in the car, but indicated that his passenger had some cash in the car. When Cruz-Rivera was questioned about transporting large sums of cash in the car, he gave evasive answers before finally stating that there was $1,000 in the car. After Jimenez consented to a vehicle search, $44,000 in a black bag was recovered.
The cash was seized, but Jimenez and Cruz-Rivera were released. Subsequently, a cooperating witness provided law enforcement with information regarding Jimenez and Cruz-Rivera’s drug trafficking activity. In approximately 2012, the cooperating witness began purchasing heroin from Cruz-Rivera. On Oct. 4, 2013, Jimenez told the cooperator that he drove for the drug delivery because it was less likely that he would get in trouble if they were pulled over because he was a firefighter.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Worcester Police Chief Steven M. Sargent; Fitchburg Police Chief Ernest Martineau; Leominster Interim Police Chief Michael Goldman; and Lunenburg Police Chief James P. Marino made the announcement today. Assistant U.S. Attorney Michelle L. Dineen Jerrett of Lelling’s Worcester Branch Office and William F. Abely of Lelling’s Criminal Division prosecuted the case.
Priority One: Building Safer CommunitiesRead the Press Release
It has now been a year since I was appointed by the President to serve as the United States Attorney for the Western District of Louisiana, a district encompassing 42 of Louisiana’s 64 parishes. On that day, I made a commitment to use the tools at my disposal to combat the violent crime epidemic that has long plagued our state; aggressively prosecute public corruption; combat opioid addiction and fatalities; enforce existing immigration laws against criminal aliens; and hold accountable those individuals and companies who damage our environment, thereby endangering our health and quality of life. By prioritizing prosecutorial resources and building meaningful and lasting relationships with our many dedicated local, state, and federal law enforcement partners, I am pleased to report that – though much work remains – we are making progress.
Our number one priority remains eradicating violent crime through the Project Safe Neighborhoods (“PSN”) initiative, which targets felons with firearms and those involved in criminal enterprises who use firearms to intimidate, threaten, and kill those living in the neighborhoods where they operate. Since the implementation of this initiative, we have more than tripled the number of firearm and violent crime cases prosecuted by my office.
And the results have been remarkable. With few exceptions, violent crime rates have dropped throughout the district. In Monroe, homicides declined 54 percent in 2018 compared to 2017, and violent crime as a whole dropped by 24 percent. Likewise, Lafayette saw a 62 percent decline in its homicide rate, while Shreveport saw its violent crime rate drop 14 percent. To put it in human terms: last year there were 257 fewer victims of violent crime in Shreveport, 261 fewer in Monroe, and 42 fewer in Lafayette. Each of these numbers represent a man, woman, or child who has been spared death, injury, or life-long trauma by our collaborative effort to target those perpetrating violence. Available data indicates that 2019 will bear out even further reduction in violent crime in Shreveport, Monroe, and Lafayette, and further expansion of the PSN initiative into Lake Charles and Alexandria.
Aggressive prosecution of street gangs also remains a core component of our strategy. Late last year, prosecutors from my office convicted the core members of the “Block Boyz”, a notorious street gang that long terrorized Shreveport’s Queensborough neighborhood with firearm violence, armed robberies, drug peddling, and witness intimidation. The members of this gang are now in federal prison and the Queensborough neighborhood is free from their menace.
Make no mistake: violent crime and gang cases are difficult and often involve personal risk to the law enforcement officers who confront these violent criminals. But the stakes of shying from our responsibility are higher. Doing nothing means that we allow our neighborhoods to be ruled by street gangs, with children afraid to play in their front yards and elderly residents afraid to answer their front doors. The Constitution mandates that my duty as U.S. Attorney is to “take care that the laws be faithfully executed.” Lawlessness will not stand under my watch. We will not allow a culture of violence to deprive honest, hardworking Louisianans of the freedoms and opportunities we cherish as Americans.
We are also making progress on other priorities. We continue to identify and prosecute public officials who abuse our trust or use public office as a way to illegally line their own pockets. In recent weeks, we convicted at trial Patrick Hale Dejean, a Jefferson Parish Justice of the Peace who stole hard-earned wages from vulnerable citizens appearing in his court, and former prison warden Nathan Burl Cain II, who used his position as Warden to embezzle taxpayer money. Currently under indictment are Caddo Parish Commissioner Lynn D. Cawthorne who is accused of defrauding taxpayers out of more than $500,000.
In the past year, we have also dramatically increased our efforts to enforce this country’s immigration laws – particularly against violent criminal aliens, including the capture and prosecution of ICE’s “Most Wanted” fugitive, who was here illegally after having been convicted and subsequently deported for indecent liberties with a child.
In the fight against opioids, we recently convicted two drug traffickers who were carrying enough of the synthetic opioid – fentanyl – to kill every man, woman, and child in the state of Louisiana, and we have federally charged a Monroe man with intentionally selling fentanyl-laced heroin responsible for at least one person’s death. He faces up to life in prison. We also continue to investigate and prosecute doctors, pharmacists, and other medical professionals who operate so-called “pill mills,” which fuel addiction and, ultimately, cause death.
Finally, we continue to defend the state’s environmental treasures from those who would illegally exploit or damage them. In a recent case, we convicted the owners and managers of a defense contracting company for their roles in defrauding the government and turning Camp Minden, Louisiana, into the largest illegal dumping ground for military explosives and munitions in the history of our country – resulting in a tremendous explosion that endangered countless lives.
Obviously, my office does not act alone in its mission. Without exception, the sheriffs, police chiefs, and district attorneys throughout the Western District have provided vital and enthusiastic support to our efforts. It is through coming together to uphold the Rule of Law that we can continue to “secure the blessings of liberty” for our citizens.
David C. Joseph is the U.S. Attorney for the Western District of Louisiana, an area that encompasses two-thirds of the State of Louisiana, including the cities of Shreveport, Lafayette, Lake Charles, Monroe and Alexandria. Joseph serves as the chief federal law enforcement officer in his district and oversees the investigation and litigation of all criminal and civil cases brought on behalf of the United States. For more information visit, www.justice.gov/usao-wdla and @USAO_WDLA on Twitter.
President of Michigan Electric Company and Three Construction Firms Agree to Pay $466,500 to Settle False Claims Act AllegationsRead the Press Release
PHILADELPHIA – U.S. Attorney William M. McSwain announced today that Tooles Contracting Group, LLC, of Detroit, Michigan, Commercial Contracting Corporation (CCC) of Auburn Hills, Michigan, G&B Electric, Inc., and G&B Electric’s President, James Gierlach, both of Ferndale, Michigan, have agreed to pay the United States $466,500 to resolve allegations that Gierlach, G&B Electric, and Tooles engaged in bid rigging and inflating invoices submitted to the National Railroad Passenger Corporation (Amtrak) as part of contracting work performed to increase the accessibility of Amtrak stations in Hammond, Louisiana, Beaumont, Texas, Alpine, Texas, and Little Rock, Arkansas. CCC, as the minority owner of Tooles, also contributed to the settlement.
Based on its investigation, the United States contends that Gierlach and a Tooles employee engaged in bid rigging when the Tooles employee shared a bid for the electrical work on the Beaumont, Texas, station with Gierlach. As part of this scheme, Gierlach paid cash to the Tooles employee in exchange for this information.
The United States also contends that Gierlach and G&B Electric submitted false invoices for their work at other Amtrak locations. First, in November 2010, at Tooles’ urging, Gierlach submitted an invoice for $28,440 in excess of the work that had been completed at the time. Second, Tooles and G&B Electric caused false claims related to carpenters to be submitted to Amtrak. Tooles requested that Gierlach place certain carpenters as subcontractors to G&B Electric and submit a change order for $115,000 to cover the cost of the carpenters. The true cost of this work was approximately half of that amount and G&B Electric and Tooles agreed that G&B Electric could keep the difference in exchange for future renovations of Tooles’ office building. Tooles approved the overinflated invoices that comprised the change order, which was then paid by CCC. All Amtrak contracts pass through Amtrak’s Philadelphia procurement office.
“Government contractors must be honest in their bidding and in their billing,” said U.S. Attorney McSwain. “Bid rigging damages both the government and the market by rewarding corruption. This settlement reflects the seriousness with which my Office takes these allegations and the lengths we will go to investigate false claims submitted by contractors that are the result of an unfair bidding process.”
“We’re proud of the tenacity displayed by our investigative staff and the U.S. Attorney’s office, a team effort that helped bring this complex case to its resolution,” said Kevin Winters, Amtrak’s Inspector General. “This work underscores the importance of our mission and our commitment to detecting and preventing fraud, waste, and abuse.”
The case was handled by Assistant United States Attorney Paul J. Koob. The case was investigated by the Amtrak Office of Inspector General.
Pennsylvania man admits to his role in a heroin distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Chad Juan M. Neal, of Duquesne, Pennsylvania, has admitted to heroin distribution, United States Attorney Bill Powell announced.
Neal, also known as “CJ,” age 25, pled guilty to one count of “Conspiracy to Distribute Heroin” and one count of “Distribution of Heroin.” Neal admitted to conspiring to distribute heroin in Harrison County, West Virginia and elsewhere from January 2016 to May 2016.
Neal faces up to 20 years incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Pair of Shooters Sentenced to Statutory MaximumRead the Press Release
Two men who discharged firearms in Marion were sentenced today to ten years in federal prison.
Mykael Robertson, age 20, from Cedar Rapids, Iowa, received the prison term after a November 5, 2018, guilty plea to possessing ammunition after sustaining a conviction for domestic violence. Yecary Harris, age 19, from Cedar Rapids, Iowa, received the prison term after a November 5, 2018, guilty plea to possessing ammunition as a felon.
Evidence at the sentencing hearing showed that in May 2018, while at the Houby Days celebration, Robertson was assaulted by a group of men. On May 24, 2018, Robertson and Harris were passengers in a vehicle when they observed two vehicles, each driven by an individual they associated with the assault. Robertson and Harris had the driver of their vehicle position the vehicle in front of the other two cars. As the vehicles turned onto First Street in Marion, directly next to Thomas Moore Park, Robertson and Harris leaned out of their respective windows and began discharging their firearms at the two vehicles behind them. One bullet struck the windshield of one of the vehicles, causing injury to the driver. Officers eventually recovered six shell casings and multiple bullet fragments from the scene.
Robertson and Harris were sentenced in Cedar Rapids by United States District Court Judge CJ Williams. During the sentencing hearing, the Judge Williams noted that defendants’ acted in “an incredibly reckless manner that could have resulted in multiple fatalities.” Robertson and Harris were each sentenced to 120 months’ imprisonment. They must also each serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Robertson and Harris are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Marion Police Department, The High Risk Unit of the Sixth Judicial Probation Office, the Federal Bureau of Investigations, the Cedar Rapids Police Department, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 18-CR-0060.
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